Effective Wealth Transfer Strategies

Maximizing the value of your estate.

This Strategy is best suited for:• People who want to leave more wealth to their heirs

or favorite charities.

- or -

• Anyone with assets that they do not anticipate using during their lifetime.

Effective Wealth Transfer Strategies

Our Philosophy1. To preserve your lifestyle.

2. To protect your hard earned savings.

3. To maximize what you leave to each other and to your heirs.

4. To minimize the tax burden your heirs will be faced with as your wealth transfers to them.

Effective Wealth Transfer Strategies

Always remember you have two beneficiaries in your estate:•Your heirs•The IRS

Three Asset Classes

TaxableCDs

Savings

Stocks

Bonds

Mutual Funds

Rental Income

Tax DeferredAnnuities

IRAs

401(k)s

TSAs

Income Tax Free*

Life Insurance

*Death benefit is generally tax free to your beneficiary

What makes Life Insurance Federal Income Tax Free?

“Life insurance proceeds paid to you because of the death of the insured person are not taxable…”

What can a wealth transfer life plan do for you?

• Immediately increase the value of your assets.• Increased values are fully guaranteed.• Increased values are free from market risk.• No federal income taxes.*• Available cash for unexpected emergencies.• No probate costs.**• Proceeds transfer rapidly; no delays.• Unlike a will, beneficiary designations cannot be

contested.***

*Generally, death benefits pass to your named beneficiary tax free. **Generally, life insurance proceeds by-pass probate On the same page, the 8th bullet point, place a triple asterisk at the end of the line. ***A claim must be submitted to the life insurance company, with complete documentation as required under the policy.

What can a wealth transfer plan do for you?

A wealth transfer plan can give you a significant head start on what you will leave to your heirs.

Immediate Value At 10 years At 15 years

Assumes CD and Annuity rates of 3.50%. Annuity values shown are tax deferred. *premium paid of $50,000 amount provides the death benefit payable to your heirs at death

50k 50k

104k 104k 104k

64k70k 72k

84k

* **

What can a wealth transfer plan do for you?

A wealth transfer plan can help you lock in or increase your existing values while eliminating market risk.

Client originally purchased

$50,000

In stock.

The stock grew by $20,000 over a

number of years:

$70,000

The client would like to eliminate market

risk but is concerned about the impact of capital gains taxes.

Strategy: Client sells the stock and

pays $3,000 in capital gains taxes.

The remaining value $67,000 is placed

into a wealth transfer plan.

The Wealth Transfer Life Plan guarantees

a total value of

$121,801

This increase is locked in

immediately and passes income tax free to their heirs

most likely avoiding probate.

Example:

70-year old

What can a wealth transfer plan do for you?

A wealth transfer plan can recover lost wealth from market corrections.

$140,000

$95,000

$159,965Immediate Increase (face amount)

Income tax free death benefit

Usually avoids probate

What can a wealth transfer plan do for you?A wealth transfer plan can make your interest more interesting.

$178,571Earning 3.5 %

Female Age 73: She has $178,571 earning 3.5% or $6,250 / year.

$139,000Generally Income

TAX FREE!!

Each year after taxes she uses her interest to purchase a wealth transfer plan.

This adds an additional $139,000 to her estate INCOME TAX FREE.

$6,250 $6,250 annuallyannually

$317,571

Total Value:

78%

Increase

$44,750Freed up for

your use!

What can a wealth transfer plan do for you?

A wealth transfer plan can free up valuable dollars while still accomplishing your goal of leaving assets to your loved ones.

$100,000Asset

earmarked to be left to heirs

Wealth transferlife plan createsan immediate

benefit value of

$100,000

Income Tax Free

$55,250Transferred to awealth transfer

life plan.

What can a wealth transfer plan do for you?

A wealth transfer life insurance plan can immediately maximize the value of the assets you leave to those you care about most.

• Benefits are income tax free, in most cases.• Values are guaranteed.• Assets normally transfer outside of probate costs and

delays.

Increase your wealth today!Increase your wealth today!

How do you feel about:

• An Immediate increase to the value of your asset?• Your values being fully guaranteed?• Your assets being free from market risk?• Likely eliminating federal income taxes?• Likely avoiding probate costs & delays?• Your assets transferring rapidly with no delays?• Your desires for your beneficiaries not being

contested?